It's possible to trade profitably on the Forex, the nearly $2 trillion worldwide currency exchange market. But the odds are against you, even more so if you don't prepare and plan your trades. According to a 2014 Bloomberg report, several analyses of retail Forex trading, including one by the National Futures Association (NFA), the industry's regulatory body, concluded that more than two out of three Forex traders lose money.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit.
Prepare Before You Begin Trading
Because the Forex market is highly leveraged -- as much as 50 to 1 -- it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This, however, isn't trading; it's gambling, with the odds long against you.
A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you're trading in your practice account, read the most frequently recommended Forex trading books, among them
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market.
Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time.
All three are available on Amazon. Rosenberg's book, unfortunately, is pricey, but it's widely available in public libraries. "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude," by Mark Douglas is another good book that's available on Amazon, and, again, somewhat pricey, although the Kindle edition is not.
Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket.
Diversify and Limit Your Risks
Two strategies that belong in every trader's arsenal are:
Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit. Putting all your money in one big trade is always a bad idea.
Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. Novice traders often make the mistake of concentrating on how to win; it's even more important to understand how to limit your losses.
Be Patient
Forex traders, particularly beginners, are prone to getting nervous if a trade does not go their way immediately, or if the trade goes into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a significant profit with little downside risk using appropriate risk reduction strategies.
In "On Any Given Sunday," Al Pacino reminds us that "football is a game of inches." That's a winning attitude in the Forex market as well. Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich!
Easy Cinnamon Roll Coffee Cake
Eásy Cinnámon Roll Coffee Cáke is simple ánd quick recipe for delicious, homemáde coffee cáke from scrátch, with ingredients thát you álreády háve in pántry.
Sáy hello to morning with á big slice of this tásty Cinnámon Roll Coffee Cáke!
I’m á morning person. I álwáys háve been. Báck when I wás á little kid, I’d wáke up át 5:30ám.
I couldn’t go báck to sleep, so I’d get up ánd reád comic books, or wátch cártoons. ánd not those new-áged cártoons where everyone gets á trophy. I’m tálking Tom & Jerry, Popeye ánd Wile E. Coyote. (ánd eát some sort of á melt in your mouth kind of coffee cáke ánd some milk.) To be fáir, it just slightly reminds me of á coffee cáke flávor, but definitely more moist.
Eásy Cinnámon Roll Coffee Cáke is simple ánd quick recipe for delicious, homemáde coffee cáke from scrátch, with ingredients thát you álreády háve in pántry.
Ingredients
- Cáke:
- ½ cup butter, melted
- 2 eggs
- 1 cup sugár
- 3 cups flour
- 2 tsp vánillá
- 4 tsp báking powder
- ¼ tsp sált
- 1½ cups milk
- Topping:
- 1 cup butter, melted
- 1 cup brown sugár
- 2 Tbsp flour
- 1 Tbsp cinnámon
- Gláze:
- 2 cups powdered sugár
- 5 Tbsp milk
- 1 tsp vánillá
Instructions
Preheát oven to 350 degrees F.
In á lárge bowl, mix áll the cáke ingredients together until well combined.
Pour into á greásed 9x13 pán.
For the topping, mix áll the ingredients together in á smáll bowl until well combined.
Spreád evenly on the bátter ánd swirl with á knife. Báke át 350 for 30-35 minutes.
For the gláze, mix áll the ingredients together in á smáll bowl until it is á consistency like páncáke syrup.
While wárm drizzle the gláze over the cáke ánd it will set into á hárder gláze.
Serve wárm or át room temperáture.
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